India's Rise as a Hub for Global Capability Centres: A Boost to Commercial Real Estate
Global Capability Centres (GCCs) are on the rise in India, with several multinational corporations setting up their GCCs in cities like Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai.
Global Capability CentresCommercial Real EstateIndiaMncsOffice SpaceReal Estate PuneAug 22, 2024
According to industry reports, GCCs have absorbed over 15 million square feet of office space since 2022 in cities such as Bengaluru, Hyderabad, Chennai, Pune, Delhi-NCR, and Mumbai to establish their GCCs. This upsurge in GCCs is attributed to India's cost competitiveness, availability of skilled talent, and favorable business environment.
GCCs are centralized hubs that provide critical support functions to MNCs, including IT, finance, HR, and procurement. These centres enable MNCs to streamline their operations, improve efficiency, and reduce costs. India's GCC ecosystem is expected to grow exponentially, with estimates suggesting that the country will have over 1,500 GCCs by 2025.
The growth of GCCs in India is also driving demand for commercial real estate. Cities like Bengaluru, Hyderabad, and Pune are witnessing a surge in demand for office space, with GCCs being a major contributor. The commercial real estate sector in India is expected to benefit from this trend, with increased demand for Grade A office space.
Several MNCs have already set up their GCCs in India, including Microsoft, Google, and Amazon. These GCCs are not only creating jobs but also contributing to the growth of the Indian economy. The Indian government has also launched several initiatives to promote the growth of GCCs, including the 'Make in India' programme and the 'Digital India' initiative.
In conclusion, the growth of GCCs in India is expected to have a positive impact on the commercial real estate sector. With India's cost competitiveness, skilled talent, and favorable business environment, the country is poised to become a hub for GCCs. As the demand for office space continues to grow, the commercial real estate sector in India is expected to benefit from this trend.
About Zoho Zoho is a leading provider of cloud-based software solutions, including CRM, marketing automation, and HR management. The company has set up its GCC in Chennai, which provides critical support functions to its global operations.
About Infosys Infosys is a leading IT services company that has set up its GCC in Bengaluru. The company's GCC provides a range of services, including IT, finance, and HR.
Frequently Asked Questions
What are Global Capability Centres (GCCs)?
GCCs are centralized hubs that provide critical support functions to multinational corporations, including IT, finance, HR, and procurement.
Why are GCCs setting up in India?
India's cost competitiveness, availability of skilled talent, and favorable business environment make it an attractive destination for GCCs.
Which cities in India are witnessing a surge in demand for office space due to GCCs?
Cities like Bengaluru, Hyderabad, and Pune are witnessing a surge in demand for office space due to GCCs.
What is the estimated number of GCCs in India by 2025?
Estimates suggest that India will have over 1,500 GCCs by 2025.
How is the growth of GCCs impacting the commercial real estate sector in India?
The growth of GCCs is driving demand for commercial real estate, with increased demand for Grade A office space.
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